SINGAPORE (Feb 27): Healthcare services provider Thomson Medical Group (TMG), formerly known as property group Rowsley, has swung out of the red with full-year earnings of $2.2 million in FY18, compared to losses of $22.3 million a year ago.
The turnaround was driven by the group’s acquisition of the healthcare business in 2018. With the completion of the divestment of the real estate business in January 2019, the group is now a pure healthcare platform.
The group narrowed 4Q18 losses to $4.5 million, 88% lower than losses of $37.7 million a year ago.
This was mainly attributable to lower losses from its discontinued real estate operations. TMG registered losses $5.1 million from its real estate operations in 4Q18, compared to losses of $37.8 million a year ago.
Healthcare revenue grew 7.3% to $56.1 million during the latest quarter, from $52.3 million a year ago.
This was mainly attributable to higher overall patient load and higher revenue intensity in both its Hospital Operations and Specialised Services divisions.
As at end December, cash and cash equivalents stood at $138.9 million.
The group has announced a special final dividend of 0.025 cent per share, payable on May 28. In a press release on Wednesday, TMG says this is to mark the completion of its corporate exercise to become a pure healthcare platform and its surge back to profitability.
“We have been seeing year-on-year increases in revenue and patient loads despite the highly competitive healthcare landscape and sluggish overall economy,” says TMG chairman Ng Ser Miang. “We will build on the strong foundation of Thomson Medical Group in Singapore and Malaysia, grow and diversify our range of specialty services and regional footprint.”
Group CEO Roy Quek on Wednesday also unveiled plans for TMG’s first integrated service platform at Paragon Medical Centre, which will house its new flagships for Thomson Wellth Clinic, Thomson Fertility Centre, Thomson O&G and Thomson TCM.
“The concept of the nodal centre is to bring complementary services together in a single location to enable us to provide one-stop services to make it more convenient for our patrons,” says Quek.
Quek adds that the group will use its newly-acquired SmartParents digital platform to “provide professional advice and tips, curate the best and most appropriate products and services”.
In Malaysia, Quek reveals that the expansion of the new wing at Thomson Hospital in Kota Damansara and the Thomson Iskandar Medical Hub project in Vantage Bay, Johor Bahru are on track to be completed by end-2020 and end-3Q19, respectively.
In addition, he says TMG is in the process of advanced discussions with key partners in the US, China and Indonesia as part of its strategy to seek collaborative partnerships with industry-leading institutions and service providers.
The group says it expects to continue to be profitable in 2019.
Shares in TMG closed flat at 7.9 cents on Wednesday.
